Chinese Ministry of Industry and Information Technology publishes guide to help automakers procure chips amid global shortages –

Author: FutureCar Staff

The recent shortage of chips and semiconductors plaguing the auto industry has forced automakers around the world to temporarily close factories or scale back production. Chips and semiconductor components are vital to today’s modern vehicles, which can be fitted with dozens of individual electronic control units (ECUs).

In China, which is the world’s largest auto market, automakers are getting help from the government amid ongoing chip shortages.

TO during a seminar last week, China’s Ministry of Industry and Information Technology (MIIT) has released a manual for automakers that includes a list of common automotive semiconductors and their demand for better supply management in automotive chips, Gasgoo media reported.

The manual includes 568 products from 59 semiconductor companies for major vehicle chips, covering a total of 10 categories, including computer chips, control chips, and power chips. The manual lists more than 1,000 items in high demand by Chinese automakers, China Central Television (CCTV) said.

With the new guide, MIIT aims to better facilitate communication between automakers and chip suppliers.

The ministry’s manual is designed to serve as a bridge for Chinese automakers and semiconductor manufacturers to help the two sides “innovate and grow together,” CCTV said, citing Academy researcher Sun Fengchun. Chinese engineering.

A special meeting was organized by the ministry on Friday to help automakers better identify sources of chip suppliers, the South China Morning Post reported.

Qiao Yueshan, director of the electronic information department of the ministry, told the meeting that as more and more vehicles are electrified, connected and intelligent, semiconductors will be much more important than they are. are currently used by car manufacturers.

Demand for computer chips, power supplies and memory chips have increased in China, especially for automakers in the country who build vehicles with more advanced features, such as advanced driver assistance systems (ADAS). and the ability to drive autonomously.

According to Gasgoo, the time to upgrade chips used in vehicle production has dropped from two years to just six months.

Chinese automakers import around 90 percent of the chips used in vehicles, and Chinese automakers build one in three cars globally. Most of the chips are made in Taiwan.

At the end of January, the subcontractor Taiwan Semiconductor Manufacturing Co Ltd (TSMC) said he would prioritize the production of automatic chips. TSMC is the world’s largest chip subcontractor. In addition to supplying the automotive industry, TSMC also manufactures chips for computer giant Apple Inc.

Vehicle production fell 15.9% in January to 2.4 million units from the previous month, according to the China Association of Automobile Manufacturers. However, it is not clear whether chip shortages alone are responsible for the slowdown.

In addition to the published manual, MIIT will provide active guidance and support for the development of the automotive semiconductor segment and improving the IC supply capability.

The segment platform will strengthen supply chain construction, improve distribution efficiency and provide strong support for the stable and solid development of the industry, MIIT said.

Tian Yulong, chief engineer of the ministry, told a press conference on Monday that the chip industry faces both opportunities and challenges, so it is necessary to form a global partnership to establish a chip supply chain and maintain its sustainable development, Gasgoo reported.

Yulong said the Chinese government will provide strong support.

The Chinese Ministry of Industry and Information Technology was established in 2008 as a department of the State Council responsible for the administration of China’s industrial branches and information industry.

The main responsibilities of the ministry are to determine China’s industrial planning, policies and standards, to oversee the day-to-day functioning of industrial branches, and to promote the development of major technological equipment and innovation in the industrial sector.

U.S. automakers including Ford Motor Co, General Motors and Tesla are also experiencing chip shortages and have been forced to cut production due to recent shortages.

The shortages are blamed on the global pandemic, which led to lower auto sales and supplier production from the second quarter of 2020. This also led automakers to cut orders for semiconductors and chips used in the production of vehicles and to increase the production of chips for electronic devices such as laptops, sales of which had increased as more and more people were forced to work remotely.

But as auto sales rebounded better than expected in the latter part of 2020, automakers have ramped up production and increased chip orders, leading to widespread shortages for automakers in China, the States. United, Japan and Europe.

Analysts are calling recent chip shortages “extremes” and predicting supply chains will not stabilize until spring at the earliest.